Sempra to Sell Chile’s Chilquinta Energy to China State Grid for $2.23 Billion in Cash

10:00 AM, Oct 14, 2019 — Sempra Energy (SRE) on Monday said it has agreed to sell its 100% stake in Chilean energy company Chilquinta Energy to China’s State Grid International Development for $2.23 billion in cash as the company looks to focus on its operations in California and Texas.

The San Diego-based power company said the deal includes its 100% stake in Tecnored, which provides Chilquinta Energy with electric construction and infrastructure services, and its 50% interest in Eletrans, which owns, builds, operates and maintains power-transmission facilities.

Chilquinta Energia is Chile’s third-largest electricity distributor, providing power to 2 million customers in the Valparaiso and Maule regions in the center of the South American country, Sempra said.

“This agreement is really important,” said Sempra Chief Executive Jeffrey Martin. “It moves our company one step closer to completing the sale of our South American businesses and concentrating our investment strategy right here in North America. All of our companies in Chile, including Chilquinta Energy and Tecnored SA, are excellent businesses with a strong focus on safety reliability and customer service.”

The deal, which is expected to close in the first quarter of next year, comes two weeks after Sempra reach an agreement to sell its Peruvian operations to another China-based power company.

Sempra said on Sept. 30 that would sell its stakes in Peruvian power companies to China Yangtze power International, a unit of China Yangtze Power, for $3.59 billion in cash.

That deal is for Sempra’s nearly 84% stake in Luz del Sur, Peru’s largest electric company that serves the southern region of the country, as well its interest in Luz del Sur’s Inland Energy SAC generation business. The transaction is expected to close in the first quarter of 2020.

Meanwhile, the Sept. 30 announcement also came as Sempra said it signed a memorandum of understanding with China Three Gorges Corp. to cooperate in supplying liquefied natural gas to support growing demand in the Asian nation, including the expansion of gas-powered generation. Sempra said its participation is subject to the finalization of a definitive pact.

Companies: Sempra Energy
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